Analyis of government support tools for mining companies in the Russian Arctic zone

Abstract

The paper focuses on the development of mining companies in the Russian Arctic zone in the context of searching for new ways to improve government control over the development of the Arctic zone.Existing outer restrictions imposed upon Russia and changes in the global financial market not only determined a paradigm shift to regional government control, but also dictated the need to search for new mechanisms of state influence on the regional economy. Primarily it concerns the development of growth zones based on utilizing resource potential, creation and implementation of tools aimed at attracting investments to the Arctic zone and offsetting the factors of northern appreciation for mining companies. With this in mind, government support of specific regional development projects is becoming an urgent issue.The authors analyze new approaches to the development of public management in the Russian Arctic zone, for mining companies in particular, aimed at creating special economic conditions that would stimulate the operation of plants extracting mineral resources. Research methodology is based upon the analysis of factors restricting economic development and growth of the Russian Arctic zone and mining companies in the first place, as well as analysis of possible tools to support mining plants operating in the Arctic territories (advanced development zones, industrial clusters, «supporting zones»). The authors define priority goals and prospects of implementing such operation mode for mining companies in the Arctic zone, and propose a list of possible measures of government support needed to stimulate development of mining companies and the entire Arctic economy of Russia.